William Hill chief executive
Ralph Topping
plans to scrap online betting brands Sportingbet and Centrebet from the Australian marketplace, in the London group’s first move since the $40 million acquisition of
Tom Waterhouse
’s company.

William Hill, which is one Britain’s biggest wagering operators, spent $700 million establishing a presence in Australia through the purchase of TomWaterhouse.com.au and Sportingbet (which owns Centrebet) in March. Mr Topping told The Australian Financial Review that the London Stock Exchange-listed company wanted eventually to consolidate most of the businesses under the William Hill brand to take on what he described as “struggling" online operations of local companies such as Tatts Group and Tabcorp.

Mr Waterhouse’s controversial brand will remain until December 2015, as part of a potential $70 million earn-out agreed to as part of the acquisition struck in August.

But Mr Topping said Centrebet was a “secondary brand" and there was some confusion in the market between Sportingbet and Sportsbet, the online bookmaker owned by rival British giant Paddy Power.

“You’ve got confusion of brands and you have to look for a unifying brand," he said.

“They’re all strong brands but I believe the strongest brand of the lot is potentially William Hill."

The news comes amid growing competition in the $26 billion local wagering industry from British bookmakers.

London’s third major player, Ladbrokes, announced on Wednesday a $22.5 million acquisition of local company Gaming Investments, which runs bookmaker.com.au. The Brisbane company was founded by Dean Shannon, who established the internet pornography division of AdultShop.

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Mr Topping said the review of Australian brands would be discussed at a board meeting in London next week. Although the final decision rests with the board of William Hill, Mr Topping intimated it would be a tough sell to go against the “personal preference" of the chief executive. He expects a final decision within four to six weeks.

“This is not a gut reaction, it’s based on an assessment of the marketplace," he said. “William Hill is 80 years old. This is not a fly-by-night brand."

Mr Topping’s stance on the brands has progressed from one month ago, when he told the Financial Review that although he was leaning towards the William Hill brand, the decision would be made “in the fullness of time".

The removal of the brands is backed by
Michael Sullivan
, who was previously CEO of Sportingbet and now heads up William Hill Australia.

“Do I have an emotional attachment to Sportingbet?" Mr Sullivan said. “Yes, but I’m over it already . . . if I wasn’t comfortable I’d be gone."

However the move might surprise the market, given there has been heavy investment in building up brands. The marketing activity of betting companies sparked widespread concern earlier this year.

It was the campaign waged by Mr Waterhouse, which saw his turquoise and grey themed branding spruiked throughout live sports broadcasts that came in for the most criticism. The episode led to a new industry code of conduct that put limits on generic advertising and banned live odds during sports broadcasts.

William Hill’s Australian businesses are representative of the rise in online-only bookmakers that have put pressure on local retail and online operators. Most of the new operators are based in the Northern Territory to take advantage of lower tax rates.

Mr Topping, who has been in the top job at William Hill for the past six years and has just marked his 40th consecutive year in the business, has his eye on the incumbents. One reason William Hill has invested in Australian online players is that Tatts and Tabcorp “are struggling, I think, with their multi-channel offering", he said.

Online revenue lifts

The two local players both reported rises in wagering revenue from online channels in 2012-13. But Mr Topping described the incumbents as weak, complacent and said he did not expect either company to make the “huge investment" needed in a multi-channel offering.

“That leads to opportunities for entrepreneurial companies."

Mr Topping, who began working with the company in the late ‘60s in Glasgow as a “Boy Saturday" taking bets on the cashier’s desk, said the key to a successful online bookmaking company was people. He outlined four key roles under the regional chief executive which require “superstars": a digital director, as well as heads of marketing, IT and trading.

Once those four roles were covered Mr Topping said he and Mr Sullivan were akin to “parents at a soccer match".

“We’re running down the line and we’re criticising the referee, whether that be the regulators or whoever, to help these guys," he said. “We’re funding them and we’re encouraging them. If that works and they build energised and energetic teams you see a business that becomes a great business."

The 62-year-old, who said he had two to three years left in the business, heaped praise on Mr Sullivan. “If Michael was in the UK he would be my No.2," he said.

Mr Topping conceded that his new operators pay too much to acquire customers, but said these costs were “plummeting" as the group refocused marketing efforts on digital channels.

Analysts have suggested new advertising rules might lead betting companies to pull back on marketing efforts, but the entry of Ladbrokes may instead reinvigorate the competitive market.

Bookmaker.com.au was established in February 2012, but quickly gained a following, especially among racing punters. The website took $400 million in bets in 2012-13. Mr Shannon, a keen owner of racehorses in the trotting industry, will stay on for three years.